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Master Thesis Defense

My presentation to defend my Master Thesis (MBA). It worked out really great!
by

Florian Wrobel

on 4 September 2014

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Transcript of Master Thesis Defense

Digital Video and Disintermediation in the Value System of the Motion Picture Industry
Introduction
Value Added Structure
Intermediation
Motion Picture Industry
Disintermediation in the Motion Picture Industry?
Impact on the value added structure of the motion picture industry.
New technologies are used in the creation and distribution of content.
Problem Definition
Points of View on Value Added
Visualization of Value Added Structure
Technology typology and activity logic are the main factors, which have to be considered when deciding which approach to use for the analysis of the motion picture industry.
Technology typology and the inherent value added logic are the main factors which inspired the enhancement of the value chain and value system models.
Four different approaches are available to visualize and analyze value added structure at industry level and three approaches can be identified at company level.
Research Objective:
Identification of the factors that have to be considered when deciding which approach to use to visualize and analyze the value added structure of the motion picture industry?
Research Objective:
Identification of the factors that have to be considered when attempting to examine the potential of disintermediation to occur.
Cross Industry Research
Media Industry Research
Finance Industry Research
Trade and Marketing Research
Intermediation and Intermediaries
Only, if the intermediary can no longer perform the remaining activities more effective and/or efficient.
Will and can the intermediary’s vertical up- and downstream market participants take over the remaining activities?
Practical research objectives :
Assessment* of the disintermediation potential.
Theoretical research objectives:
Research Objectives
Identification of the factors that have to be considered when attempting to examine the potential of disintermediation to occur.
Identification of value added activities and the inherent activity logic.
Identification of intermediaries and their activities.
Identification of those areas with a presumably high disintermediation potential.
Identification of the factors that have to be considered when deciding which approach to use to visualize and analyze the value added structure of the motion picture industry.
All activities performed by intermediaries have to be accurately captured.
Not all activities are equally impacted by technology.
Which activities do they perform?
What is the reason for their existence?
Activities of Intermediaries
Value provided by Intermediaries
When does disintermediation occur?
All activities of an intermediary become obsolete.
Disintermediation
What is disintermediation?
The elimination of an intermediary leading to a direct trade between the intermediary’s vertical up- and downstream market participants.
Only if the intermediary is no longer able to add value, then will there be a potential for disintermediation to occur.
The intermediary’s vertical up- and downstream market participants take over the activities of the intermediary.
Research Objectives:
Identification of value added activities and the inherent activity logic of the motion picture industry..

Identification of intermediaries and their activities.
Value Added Structure and Intermediation
Independent Film Project Value Chain
Filmed Entertainment Value Chain.
Value Chain for Motion Pictures
Existing Film Value Chain Model
Film Industry Value Chain
All authors use the Value Chain Model despite its original intend.
Activity logic follows mainly a sequential logic.
Findings
Various differences between the models can be identified.
Intermediaries and their activities are not sufficiently visualized.
A new model to visualize the value added structure is required.
Motion Picture Value System Model
With the exception of the duplication and manufacturing activities, the performance of these activities is personnel intensive, i.e. performed by experts with experience and certain skill sets.
These intermediaries perform various activities on the informational-, legal-financial and physical level.
Various intermediaries are involved in the motion picture value system.
The Baligh-Richartz-Effect, specialization and experience, scale effects as well as standardization are the main sources of value of these intermediaries.
Research Objectives:
Identification of those areas with a presumably high disintermediation potential.

Assessment* of the disintermediation potential.
Predicted Future Developments
Adjusted Motion Picture Value System
Only in rare cases will technological advancements make certain activities obsolete, e.g. the duplication activity. However, even in these cases, some activities of the intermediary remain unaffected.
Technological advancements only affect a small amount of the activities that are performed by intermediaries.
Based on scale effects, the Baligh-Richartz-Effect, standardization as well as specialization and experience, it appears unlikely that the intermediaries’ up- and downstream market participants will take over and perform the (remaining) activities as efficiently as the intermediary.
Use of Porter’s model(s) as intended.
Outlook
Disintermediation is predicted to occur in the licensing as well as the distribution and marketing stage.
Examination of other drivers, which influence value added structure.
Regulatory developments
Consumer behavior
Analysis of the developments in the cinema exhibition sector
Detailed examination of the potentially changing windows of exploitation.
Empirical analysis of disintermediation in the motion picture industry
?
Questions
The activity logic follows a mainly sequential logic.
Existing approaches
New approach
Disintermediation
Source: Eliashberg, J. et al. (2006)
Source: Hawkins, R., Vickery, G (2008)
Source: Küng, L. (2008)
Source: Bloore, P. (2009)
Source: Finney, A. (2010)
Full transcript